Thursday, 23 February 2023 12:24

Capital return on track - Fonterra

Written by 

Fonterra says its remains committed to targeting “a significant” capital return to shareholders and unit holders next financial year.


The co-operative board will make a final decision on the amount and timing of any capital return once the sale agreement of its Chilean business Soprole is unconditional and cash proceeds are received in New Zealand.


The board will also consider “other relevant factors” including Fonterra’s debt and earnings outlook at such time.


Fonterra announced in November that it was offloading Soprole to Gloria Foods, a transaction that will result in aggregate consideration (sale price and future payments) of over $1 billion.


The sale is subject a number of regulatory approvals.


Today Fonterra chief executive Miles Hurrell confirmed approval from the Chilean competition authority, Fiscalía Nacional Económica (FNE), has now been received.


“Completion of the sale remains subject to satisfaction of other conditions previously announced, including commencement of an irrevocable public tender offer process in Chile for the outstanding shares in Soprole not already owned by Fonterra.


“Receipt of FNE approval is a significant milestone for the transaction and we remain on track in the sale process. We will update the market on expected timing for completion of the sale as the remaining conditions are progressed,” says Hurrell.


Gloria Foods is a consumer dairy market leader in Peru, with operations in Bolivia, Puerto Rico, Argentina, Colombia and Uruguay. Fonterra and Gloria Foods have a long-standing commercial relationship in South America.

 

More like this

Fonterra trims board size

Fonterra’s board has been reduced to nine - comprising six farmer-elected and three appointed directors.

Returns 'not good enough'

Fonterra leaders are making their case for offloading the co-operative's $3 billion consumer business, noting that its return on capital has been nowhere near respectable.

Record milk price!

A record farmgate milk price for Fonterra shareholders is all but confirmed for this season.

Chinese strategy

OPINION: Fonterra may have sold its dairy farms in China but the appetite for collaboration with the country remains strong.

Featured

Massey Research Field Day attracts huge interest

More than 200 people turned out on Thursday, November 21 to see what progress has been made on one of NZ's biggest and most comprehensive agriculture research programmes on regenerative agriculture.

Expo set to wow again

Stellar speakers, top-notch trade sites, innovation, technology and connections are all on offer at the 2025 East Coast Farming Expo being once again hosted in Wairoa in February.

A year of global challenges

As a guest of the Italian Trade Association, Rural News Group Machinery Editor Mark Daniel took the opportunity to make an early November dash to Bologna to the 46th EIMA exhibition.

National

OSPRI's costly software upgrade

Animal disease management agency OSPRI has announced sweeping governance changes as it seeks to recover from the expensive failure of…

Machinery & Products

BA Pumps expand

Cambridge based BA Pumps & Sprayers, specialists in New Zealand-made spraying equipment, has acquired Tokoroa Engineering’s product range, including the…

Entries open for innovation award

Fieldays and its renowned Innovation Awards are celebrating their 57th year, marking a longstanding tradition in the agricultural calendar, with…

» Latest Print Issues Online

Milking It

Chinese strategy

OPINION: Fonterra may have sold its dairy farms in China but the appetite for collaboration with the country remains strong.

Not fair

OPINION: The Listener's latest piece on winter grazing among Southland dairy farmers leaves much to be desired.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter